Human Resources

University Policy on Discretionary Allowances and Payments

Policy No.
UP07/209
Function
Human Resources
Authoring Organisational Unit
Human Resources - Central Unit
Date Approved
25/06/2012
Approving Body
Senior Deputy Vice-Chancellor And Registrar

The University of Western Australia

Save this template to the preferred folder on your network drive. 

Note: You must save the template each time you want to write a policy to ensure that you are using the most recent version of the template.

You can use the show/hide button on your toolbar (this looks like a paragraph mark) to hide or show instructions in the template.  If clicking on this button does not work, please go to Tools - Options - View - and un-tick “hidden text” before trying again.

Note: Please do not type or paste over instructions.

(A comprehensive set of instructions is also provided on the Template and Instructions page of the University Policies website.)

To include text in the template, except in the Definitions section, place your cursor at the end of the relevant section heading provided or at the end of the relevant instructions and press “Enter” before beginning to type or pasting in text.  To include text in the definitions section place your cursor immediately under the heading before beginning to type.

Note: If you are pasting in text you must save it as plain text first so that you do not import any additional styles into the policy document.

Formatting styles are embedded in this template and can be found in a drop-down menu on your toolbar.  Note: Please do not add to or alter the styles.  It is recommended that styles be applied once text is finalised.  Apply a style by highlighting the text and clicking on the appropriate style from the drop-down list.

If you require a numbered heading style within the policy text, please use Heading 4 from the drop-down styles list.  This will automatically apply a number to the heading and each time you use the Heading 4 style the next sequential number will be applied automatically. 

Styles 1.1 (Style 1), 1.1.1 (Style 2), and 1.1.1.1 (Style 3) are available for the body of the text.  To reduce complexity, it is recommended that numbering below the level of 1.1.1.1 be avoided.  Bullet points can be used for lists if required.  The list bullet style is available from the styles drop-down list.

Note: If you press “Enter” after a heading provided in the template or after a set of instructions the Normal, Policy style will automatically be applied.

Note: Please do not use tabs in your document.  

University Policy on: Discretionary Allowances and Payments

Overtype “Policy Name” with the name of the policy.  This must convey specifically, accurately and succinctly what the policy addresses eg Award of Honours, Study Leave.

Purpose of the policy and summary of issues it addresses:

This policy defines the core principles common to all discretionary allowances and payments granted to attract and retain employees who have special skills or expertise, and to recognise and reward outstanding performance.

This must be in Normal, Policy style.

Provide a brief summary of the reasons for the policy and issues it addresses.  This section is designed to stand alone.  The aim is to provide the reader with enough information to make a decision about whether or not this is the policy they are looking for.  It must not be longer than 200 words. 

Example 1

This policy defines the nature and purpose of study leave provisions for academic staff and sets out eligibility criteria and other conditions that apply.

Example 2

This policy seeks to rationalise the award of honours across the University by addressing such issues as: entry standards, course content and structure, supervision, assessment, examination, grades, classifications, benchmarking and the maintenance and provision of documentation relating to these matters.  It is based on resolutions of the Academic Board flowing from the 1999 report of the Honours Working Party.

Definitions:

"Approved Delegate" means a position granted authority to act on behalf of the Vice Chancellor with varied levels of authority in line with the University's Delegations.

"Base Salary" means the salary point in the relevant University salary scale paid to the employee concerned.

"Employee" means a person employed by the University.

"Remuneration Committee" means the University Committee chaired by the Vice Chancellor to determine and review the University's remuneration policy and monitor salary and allowance movements.

"Standing Remuneration Committee" means the University Committee comprising the Senior Deputy Vice Chancellor and at least one of the Director, Human Resources or the Associate Director, Equity and Diversity.

"Supervisor" means the person who is responsible for day-to-day supervision of the employee.

"University" means The University of Western Australia.

Place your cursor immediately under the definitions heading to get the definitions style.

Policy statement:

The University is committed to attracting, developing and retaining the highest quality staff. To meet this commitment, the University will offer competitive remuneration for skills which are in high demand, and recognition and rewards for outstanding performance.

Discretionary allowances granted to attract and retain employees who have special skills or expertise, and to recognise and reward outstanding performance include:

Attraction Allowance

Retention Allowance

Market Allowance

Performance Allowance

Bonus Payments

A comparison table of discretionary allowances, which can be used to determine which allowance is applicable to a particular circumstance, can be found at Overview of Discretionary Allowances.

1 Principles of discretionary allowances

1.1 Discretionary allowances and payments form part of the University's remuneration and performance management regime, and it is important that all the elements of performance management support and compliment one another.

1.2 The allowances and payments link closely to the Performance Appraisal Report (PAR), which places the onus on supervisors to proactively identify and reward outstanding performance, in addition to ensuring accountability and consistency of the application of allowances.

1.3 Monetary rewards are not the only, and often not the most effective means of recognising achievement. University Policy: Reward and Recognition provides practical guidance on rewarding individuals and teams through a range of formal and informal mechanisms.

1.4 The general principles of allowances and remuneration are determined by the University's Remuneration Committee.

1.5 Temporary discretionary allowances will attract 9% employer superannuation contribution, which will be paid to accumulation funds. Ongoing discretionary allowances will attract 9%17% (as applicable) superannuation.

2 Approval process

2.1 Applications for all discretionary allowances and payments must be made using the Discretionary Allowance Form.

2.2 Decisions to recommend allowances must be made in accordance with the University's principles of Equity and Achievement Relative to Opportunity and policies on:

· Professional Development Review (PDR)

· Performance Appraisal Report (PAR)

· Reward and Recognition

2.3 The business unit's:

· Operational Priorities Plan (OPP)

· Strategic Plan

2.4 In considering recommendations for any allowance the Dean/Standing Remuneration Committee will take into account the existing distribution of allowances within the faculty/division, the reasons for the recommendation, current remuneration for that category of employee and any other relevant factors.

2.5 Any applications, approved by the Dean, which do not meet the eligibility/purpose of the relevant policy will be referred by Human Resources to the Standing Remuneration Committee for consideration.

3 Allowance review

3.1 When an employee successfully applies for promotion or reclassification through normal procedures resulting in an increase in base salary, the allowance will be reviewed to determine if the allowance or level of the allowance is appropriate in the context of the new position. The allowance would ordinarily be absorbed or reduced at this time.

3.2 The awarding of an allowance will also necessitate a review and rationalisation of any existing allowances for that individual.

4 Governance and accountability

4.1 In conjunction with the delegated authority for approval of discretionary allowances and payments, no delegate is authorised to approve an allowance or payment to a direct report or if there is actual or a reasonable perceived conflict of interest. In these instances, application is to be approved by the Senior Deputy Vice Chancellor or Director, Human Resources.

4.2 It is proposed the Standing Remuneration Committee will meet four times per year and may deal with particular cases and conditions. All applications to the Committee are to be submitted to HR Services-Employment in the first instance.

4.3 Human Resources will provide a report annually to SDVC, Deans and Directors detailing any bonus payments granted throughout the year and all discretionary allowances. Deans or equivalent will be required to report annually on the quantum, rationale, and distributive justice of allowances in their faculty or division.

Policy or Procedure?

Policies are statements of the principles1 which govern decision-making.

Procedures are the functional steps used to implement policies.

1 Principles in this context are to be understood as being both broad and detailed.

The policy statement makes clear the intent of the policy.  It must be written in clear, precise and direct language.  Short sentences are preferable.  Any specialist words or acronyms must be defined at the beginning of the statement.  (A guide to writing styles will be available soon.)

If the policy includes procedural elements you will need to identify these as Procedures by including this word above the relevant text.  The procedures style from the styles drop-down list must be applied to the whole of the procedures text, including the word Procedures.  Note: Administrative procedures can be approved by the relevant Director.

Related forms:

Discretionary Allowances Form

Provide links to any forms associated with the policy (eg Approved Leave form) and/or to information on on-line submission.

Note: Forms are a means through which policy is processed, not made.  Forms must reflect policy and must not be used to create policy.

TRIM File No:

F43239

Insert the appropriate TRIM file number.  All policies must have a TRIM file for storing information relating to policy development and other related information.  Note this is not the policy number.  Apply for a TRIM file number at http:/intranet.uwa.edu.au/page/38742

Contact position:

HR Services-Employment

State the name of the position that is to be contacted for any queries regarding the policy, eg University Secretary.  Note: As this will link through to the University’s Contact Directory, the position name must be given exactly as it appears in that directory.

Related Policies or legislation:

Performance Appraisal Report - Policy and Procedures

Professional Development Review - Policy and Procedures

Overview of Discretionary Allowances

University Policies on:

Attraction Allowance

Market Allowance

Retention Allowance

Performance Allowance

Bonus Payments

UWA Code of Ethics and a Code of Conduct

Provide details of, and, if appropriate, web links to, other policies, legislation or committee resolutions that relate to the subject of the policy, if known, eg Statute(s), University General Rule(s).  If unsure what these might be, try one or more of the following:

Conduct a search on TRIM.

Make an enquiry to Archives and Records.

Seek help from staff in the relevant section. 

If related policies are stored in University Policy format on the University Policies site, please provide the relevant policy number(s). 

Switch off the instructions by clicking the hide/show button on your toolbar.

Check the content of the document for clarity and accuracy.

Submit the document to the relevant position or body for approval.

When the document is approved -

if the policy does not already have a University Policy number, apply for one by completing the form at http://intranet.uwa.edu.au/archives/new_university_policy_number (Control and click to follow the link.)

include the University Policy number in the relevant table box in the template; and

complete the relevant approval date and any other table boxes at the end of the template that have not yet been completed.

Save the document in Filtered HTML format to a convenient location on your network drive (Go to File – Save As and select Web Page, Filtered from the drop-down list under the filename box.)

Apply the style-checker as follows:

Go to the following URL http://www.admin.uwa.edu.au/policytidy (Control and click to follow the link.)

Browse to find the policy document you have saved in Filtered HTML.

Hit “Submit” to bring up the preview of the converted document.

Check for errata and mis-processed characters.

Once the document is correct, click on “Download Document” to download the document to the preferred folder on your network drive.

Appropriate Director emails (rorett@admin.uwa.edu.au) the policy to University Records for storing in TRIM and publishing on the University Policies website.